Wednesday, August 26, 2015

Governor McAuliffe Announces Decrease in Virginia Unemployment Rate

RICHMOND– Governor McAuliffe announced today that Virginia’s seasonally adjusted unemployment rate decreased 0.1 percentage point in July to 4.8 percent. Virginia’s seasonally adjusted unemployment rate remains below the national rate, which was unchanged in July at 5.3 percent.

The average weekly wage for private employers was $905.58 in July, 4.6 percent above a year ago.

“We are seeing tangible results from our work to build a new Virginiaeconomy in communities across the Commonwealth by attracting new, high-growth industries and fostering growth in the existing businesses that represent our employment base,” said Governor McAuliffe. “The new jobs numbers demonstrate enhanced income security for Virginia's workers while offering the opportunity of lower costs for employers doing business in Virginia. We still have much work to do, and I remain committed to providing pathways to prosperity for all Virginia families and businesses.”

From July of 2014 to July of 2015, Virginia’s seasonally adjusted total nonfarm employment was up 40,700 jobs. Over-the-year, employment grew 1.1 percent, the sixteenth consecutive month of positive over-the-year growth. Over-the-year July job gains were recorded by both the private sector, which grew by 38,500 jobs, and the public sector, which grew by 2,200 jobs. Compared to a year ago, on a seasonally adjusted basis, 10 of the 11 major industry divisions experienced employment gains.

As employment grew faster than expected in the last year, unemployment insurance (UI) benefit payments decreased and UI revenues increased. This produced an improved forecast solvency level for Virginia’s UI Trust Fund this year, which will likely eliminate the fund-building surtax in 2016, a year earlier than previously projected. The fund-building surtax, which costs employers $16 per employee, has been in effect since 2010.